Do the “Click to Cancel” laws affect self storage?

The phrase “click to cancel” has become shorthand for a growing body of consumer-protection laws aimed at making it as easy for consumers to end a recurring service as it was to begin one. Although these laws generally have developed in the context of subscriptions, memberships and automatically renewing consumer services, real estate operators should understand the concept and consider whether its reach could eventually extend beyond traditional subscription businesses.

At its core, a click-to-cancel law addresses what regulators often describe as a “subscription trap.” A consumer signs up online, provides a payment method, and agrees that charges will continue until the consumer affirmatively cancels. The concern arises when enrollment is simple but cancellation requires substantially more effort, such as a telephone call, interaction with a sales representative, a written request, or navigating a complicated cancellation process.

The federal government attempted to address this issue through the Federal Trade Commission’s “click-to-cancel” rule. The rule would have required businesses covered by the regulation to obtain informed consent to recurring charges and provide a cancellation mechanism that was at least as easy to use as the method by which the consumer enrolled. The rule also addressed disclosures, renewal terms and so-called “negative option” arrangements. In July 2025, however, the Eighth Circuit vacated the FTC rule on procedural grounds, meaning the federal rule did not become the nationwide standard many businesses had anticipated.

The concept has not disappeared. States and local governments have continued to adopt or consider their own requirements. California, for example, significantly strengthened its automatic-renewal and continuous-service law. For agreements entered into, amended or extended on or after July 1, 2025, covered businesses generally must provide consumers with a readily accessible online means of cancellation when enrollment occurred online. California law also addresses disclosures, acknowledgment of cancellation terms, changes in recurring charges and the ability to cancel without unnecessary obstacles or delays.

New York City has also moved toward its own click-to-cancel requirements, reflecting the broader trend toward regulating recurring consumer transactions at the state and local level. The developing rules demonstrate that regulators are increasingly focused not merely on what a consumer agrees to pay, but also on how easily that consumer can stop the recurring obligation.

That trend raises an interesting question for real estate operators. A month-to-month self-storage rental can look, from a transactional standpoint, remarkably similar to a subscription. The customer may rent a unit online, provide a credit card or ACH authorization, and incur a recurring monthly charge until the customer gives notice of termination and vacates the space. Other forms of month-to-month real estate occupancy can have similar characteristics. That similarity, however, does not necessarily mean that a click-to-cancel statute applies to a rental agreement. These laws frequently contain specific definitions of “consumer,” “automatic renewal,” “continuous service,” “subscription,” “goods” and “services,” as well as exemptions and limitations. California, for example, defines “consumer” in its automatic-renewal law by reference to individuals acquiring goods, services, money or credit for personal, family or household purposes.

For real estate operators, the important point is therefore not to assume that a month-to-month rental is either covered or exempt. Rather, operators should recognize that the legal environment surrounding recurring payments is changing. The traditional distinction between a “lease” and a “subscription” may become increasingly important as lawmakers and regulators examine recurring consumer charges. Operators should monitor developments in every jurisdiction where they do business and pay particular attention to the definitions, exemptions, cancellation requirements and effective dates contained in applicable laws. Even where a click-to-cancel requirement ultimately does not apply to a particular rental arrangement, the policy behind these laws offers a useful compliance lesson: recurring charges should be transparent, cancellation procedures should be understandable, and businesses should avoid creating unnecessary obstacles for customers seeking to end an ongoing relationship.

For the real estate industry, “click to cancel” may not yet answer the question of whether a tenant can terminate a month-to-month rental with a click. But the continued expansion of these laws suggests that the question is likely to receive increasing attention.